Hot prospects: the biggest mining mergers to rock the industry – by Talal Husseini (Mining Technology – October 2, 2018)

https://www.mining-technology.com/

With annual revenues often in the tens or even hundreds of billions, mining companies are big business. When mergers or acquisitions occur, they create some of the largest mining powerhouses in the world and can have an everlasting impact on the industry. Here are six of the biggest mining mergers in history.

With annual revenues often in the tens or even hundreds of billions, mining companies are big business. When mergers or acquisitions occur, they create some of the largest mining powerhouses in the world and can have an everlasting impact on the industry. Here are six of the biggest mining mergers in history.

Shenhua Group and China Guodian Corporation: $272.96bn

Two of China’s largest state-owned enterprises (SOEs), Shenhua Group and the China Guodian Corporation, completed a merger on 20 November 2017, valued at almost $273bn. The resulting entity, the China Energy Investment Corporation, became the world’s largest organisation in the coal mining, thermal power, renewable energy, and coal-to-liquid conversion industries.

At the time of the merger, China Energy took over the operation of 83 coal mines and had an approved production capacity of 429 million tons (mt), according to national broadcaster China Central Television (CCTV).

The chair of state-owned Assets Supervision and Administration Commission of the State Council Xiao Yaqing said: “It is the biggest consolidation among central SOEs in recent years.” According to Xiao, the deal was made to improve corporate profitability and to synchronise coal and electricity markets.

For the rest of this article: https://www.mining-technology.com/features/biggest-mining-mergers/

No comments yet.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.